Thanks to its legal fight with the SEC, the cryptocurrency XRP has had some tough times. The Securities and Exchange Commission investigated Ripple for using misleading tactics to boost the asset’s value. This case has been raging for months, giving Ripple the upper hand in winning.
In its most recent move against the SEC, XRP sent a letter to Ripple requesting that it be regularized in North America. The Securities and Exchange Commission wants Ripple to seek data transfers from international authorities due to this litigation. Ripple is also suspected of conducting cryptographic transactions outside of the country’s headquarters, which is considered illegal.
The SEC has made claims against XRP, which it denies.
Ripple has responded to the complaint, claiming that it has not violated any country’s transaction codes. Ripple argues that it does not provide any of the facts needed by the SC, and no such activities have ever taken place.
The Securities and Exchange Commission cannot claim that Ripple used this selling tactic by making false allegations without proof of the fraud. The Securities and Exchange Commission is trying to prove that the blockchain used the foreign exchange mechanism to increase the asset’s worth. Despite the lack of demand, the valuation of XRP has risen recently, which could be concerning for the SEC camp.
What year did the XRP litigation begin?
Chris Larsen, the co-founder of Ripple, was taken aback by the court battle between Ripple and the Securities and Exchange Commission. According to the Securities Exchange Commission, selling XRP to a single investor may be enough to violate securities laws. This action has been pending since December 2020, but the SEC will not win due to a lack of evidence.
The SEC is attempting to bolster the case by demonstrating that the use of planned commercials inflated XRP’s price. Brad Garlinghouse and Chris Larsen own Ripple, and they had designed to sell XRP in vast quantities to foreign exchange networks. According to the Securities and Exchange Commission, the corporation did not have valid paperwork to sanction the transfers outside of the United States.
Using global channels, the regulatory commission sought to find evidence against XRP. Even though the SEC has combed through each of these channels, it has not discovered any specific details that expose Ripple’s real identities or whether they have violated any laws.
The SEC probe got off to a rocky start.
Despite the SEC’s best efforts to uncover Ripple, the case got off to a bad start. Only unbiased papers from the Securities and Exchange Commission have been shown, revealing a shady Ripple probe.
With no evidence that the case is necessary, the judge could agree to dismiss the charges against Ripple in the coming days. In 2021, this probe was one of the most talked-about subjects in the crypto sphere. However, it seems to be drawing to a close, with Ripple poised to win.